What Happens to Your Practice If You Die Tomorrow? Succession Planning for Solo Attorneys [Community Counsel]

What happens to your law practice if you’re suddenly unable to continue? Succession planning for Solo Attorneys is crucial. Estate attorneys Peter Arcese and Thomas Chu share 4 essential steps to ensure your practice’s continuity and protect your personal estate.

Several years ago a LFS member passed away with no succession plan for his practice. We watched helplessly as his grieving children struggled to wind down his practice. Have you considered what would happen if you suddenly couldn’t continue because of an illness, accident or death? A well-organized contingency plan is critical for both your practice’s continuity and your personal estate. We spoke with estate planning attorneys and LFS members, Peter Arcese and Thomas Chu, about Succession Planning for Solo Attorneys. Here’s what they suggested:

4 Steps to protect your legacy

1. Set Up a Practice Continuation Plan

Ensure your practice and clients are taken care of even in your absence.

• Designate a Successor Attorney: Choose someone with the right skills to take over.

• Client File Management: Create clear instructions for accessing and handling client files.

• Active Case Inventory: Keep an up-to-date list of cases with deadlines and details.

• Financial Records: Maintain clear records of accounts and invoices.
• Client Communication: Develop a procedure for notifying clients of the transition.

2. Personal Estate Planning

Plan for your personal affairs to avoid complications for loved ones.

• Create a Will or Trust: Outline how your assets will be distributed.

• Power of Attorney: Assign someone to handle financial and healthcare decisions.

• Advance Healthcare Directives: Set medical care instructions in case of incapacity.

• Insurance: Ensure life and disability insurance are in place.

• Estate Tax Planning: Prepare for potential estate taxes.

3. 
   

   Choose and Designate a Successor Attorney

A well-thought-out succession plan is essential.

• Select the Right Candidate: Find an attorney who shares your values.

• Formalize the Agreement: Outline terms for transition, compensation, & client notifications.

• Update Your Will: Include your succession plan in your estate documents.

• Client Approval: Make sure your clients agree with the arrangement.

4. Succession Planning for Solo Attorneys: Key Steps for Implementation

Once your plan is in place, ensure it’s regularly updated and actionable.

• Ensure Access: Make sure your successor has access to essential systems and files.

• Review Insurance: Update malpractice and other insurance coverage.

• Create a Checklist: Develop a step-by-step guide for the transition process.
• State Bar Compliance: Verify your jurisdiction’s requirements for succession notification.

Here are some additional steps you can take NOW to prepare for tomorrow:

Document Office Procedures – Systematize workflows and use tools to track case information for clarity and continuity.

Designate a Power of Attorney – Identify a colleague who can act as a springing power of attorney and, if needed, your executor.

Prepare Your Documents – Ensure that your springing power of attorney is aligned with your documented procedures.

Establish a “Rainy Day” Fund – Accumulate enough resources to cover basic expenses for at least three months.

Special considerations for PCs and PLLCs

If your practice is structured as a Professional Corporation (PC) or Professional Limited Liability Company (PLLC), ensure appropriate corporate resolutions are in place to allow someone to act on behalf of the entity if needed.

It’s never too soon for solo attorneys to do succession planning

Contingency and estate planning isn’t just about preparing for the unexpected—it’s about securing your practice, clients, and family for the future. Start planning today to ensure your legacy remains intact if the unthinkable happens.

Schedule a Consultation

Need help creating your contingency plan? Contact Peter Arcese or Thomas Chu directly for expert guidance.

Peter Arcese
(646) 261-1200
pvacounsel.com
[email protected]

Thomas Chu
(212) 882-1128
tkchulaw.com
[email protected]